Tanzania - Economic development and prospects (Vol. 2 of 2) : Annex : agriculture and rural development

RESTRICTED FII.FR. I7}IWVY - AE7 Vol. 2 This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION AND PROSPECTS OF TANZANIA (in two volumes) VOLUME II ANNEX AGRICULTURE AND RURAL DEVELOPMENT March 18A 1970  EQUIVALENTS Currency 1 Tanzania Shilling = U.S. $0.14 U.S. $1 = Sh 7.14 b St. 1 = Sh 17.1428 Weight Unless otherwise stated, tons in this Report refer to long tons of 2240 lbs. Tanzania - Parastatal Organizations Abbreviations State Trading Corporation .. ......... ............ S.T.C. +arwo 1 A P.gric1lre 2sti Fooned r'nrnrnation .........G Tea Authority ........... rII<nzyvis~nI f Sl rn'rq t7i J n -.-.-.-. --T.S.G. The National Milling Corporation ...... .................. N.M.C. int a-id Seed Ma-ketinlg Board n- ..=..=.===.===.= .===== -LT.S=M=B Tanzania Tobacco Board .......... *....... *............. . . T.T.B. National Dairy Board . ...... ...................... N.D.B. Na tio naI vel opm.et fr-AA t Age-nc . . . . . . . . . . --a. ?KT .. *l N. A National Cooperative Bank ............. . ........... N.C.B. Ila UtI.Lonaul. J- . -a Ba ... . O- . ............ - . .... . . .... L4 'a., Tanzania Pyrethrum Board ....... o ...........TPB. Tanzania Sirsal -ethrum Board. . . . . . . . . . . . . . . . . . . . . . . . . . . J. . .B. Tanzania Coffee Board....... .. . ..... . T.C.B. Natonial1 Cooperat ve Wand j"eVVelopL0ent B& L-1 I N.C.D.B National Bank of Coomerce ......... .. . . * * * * N.B.C. Natllona'l insurance Corport-1vll*0 1-.. Ministry of Agriculture Water Development and Irrigation Department ............. W.D.& I.D. Regional Agricultural Officer ......a............... H.A.O. Regional Director of Agriculture ........................ R.D.A. Interregional Cotton Campaign Committee _0 ............. I.C.C. Tanganyika Agricultural Machinery Testing Unit ....... ... T.A.M.T.U. Economic Research Bureau (University College, Dar es Salaam) ....................... E.R.B.  THE MISSION This report is based on the findings of a mission which visited Tanzania during August-September 1969. The mission consisted of the following: Kudlapur G. V. Krishna (IBRD) - Chief of Mission and Chief Economist Shawki Farag (IBRD) - Economist Neil Riden (IBRD) - Economist Hans Kordik (IBRD) - Agriculturalist Carl K. Eicher (Consultant) - Agricultural Economist Deryke G. R. Belshaw (Consultant) - Agricultural Economist   qMv' VCONMIATr nDETAVPU'FT AUn PVDASPEV'r AF TAW7A*TA Volume II AGRICULTURE AND RURAL DEVELOPMENT IN TANZANIA i.ADL,E. VJ WVAINLLIJ.L Page No. SUIUV[RY -AND CONCLUSIONS I. INTKODuCTION ................................................. 1 A. Agricultural Setting.. 1 B. Performance of Agriculture During the First Plan . . 1 II. AGRICULTURAL DEVELOPMENT PROGRAMS AND COMMODITY PROSPECTS IN THE SECOND PLAN .4 A. Main Agricultural Programs ..4 B. Comnodity Prospects.. 7 Export Crops .. 7 Inport Substitution Crops ..22 Nutritionally Superior Foods ..26 Staple Food Crops ..32 F'orestry. 33' C. Mission Assessment of Agriculture in the Second Plan 35 III. TOWARDS A STRATEGY FOR AGRICULTURAL DEVELOPMENT IN TANZANIA 39 A. Governmental Organization .39 B. High Level Manpower .41 C. Research .48 D. Small-Scale Farming .51 E. Mechanization. 55 F. Smallholder Irrigation ........*..**.......V...*...... 60 G. Rural Water Supply ..61 H. Appraisal of Large-Scale Farming ..64 I. Large-Scale Government Irrigation Schemes. 69 J. The Ujamaa Village Program .71 K. Annual Planning: Implementation, Evaluation and Revision 75 STATISTICAL APPENDIX MAPS   THE ECONOMIC DETELOPIMNT AND PROSPECTS OF TANZANIA VOLUYIE II SUIMMARY AND CONCLUSIONS i. The performance of the agricultural sector during the period 1960-68 is impressive, but uneven in terms both of commodities and geographical location. Among the principal crops, the value of cotton and coffee was subjected to weather-induced fluctuations within a rising trend, but the value of sisal underwent a marked decline owing to a steep fall in prices. There has, however, been a steady rise in the output o:f some of the smaller crops, particularly casheijnuts, tea, tobacco, pyrethrum and sugar. The growth of food production was probably somewhat higher than the growith of population. ii. In terms of the broad strategy for agricultural development, the First Plan empnhasized both the 'transformationl and 'improvement' approaches. The former approach, which was based on village settlements and also other nrograms which were highly capital-intensive, w-s shelved in 1966, owing to its high cost relative to returns. On the other hand, the latter apnroch whi-h focused on extension and marketing services and also crop-oriented research was relatively more successful, as evidenced. bhv t+h sttApdv grow+h in +he marketed oututof cf rops-by hpr art prodcer. ;;;1 - ~ 'n~m1 7 rnlAa +. in i~ cc+ +.n or.v'Sr'i,l +,iv.c ~r1n="n l l-vrr 0 U-b, eA n 1964 and 1968, reflecting the decline of the sisal industry. Although t-here was onY , increa.se in., --'I non-agric -, i. Jt was inadequa to offset the trend in agriculture, until 1968. Therefore, the additions to the total 1la,bor- force h',ad- to bDe abL'sorbI,ed , 4by -h ag- -cu t4u--r -- 4ector ; wr 7> ~.>; .- - +h ^ 24 I + 7 , VU Q +h A0 V^~J x A_ An s . - .. LOr E JU s >L U VW11 wmrao C wF D;sA G >s while incomes of peasant producers fluctuated reflecting changes in porl j pice 40 for the prnincipal exL p I ort. ThIJ eD L pJ V oL sLUII U l alUU